Updated over 15 years ago on .
Estate Short Sale
I got a lead for short sale on an estate. The owner died over a year ago and before she passed her guardians took out a reverse mortgage of $502k, even though her house was worth probably $300k at best. The market has dropped to where her house is now worth probably $185-$200k. The estate took a year to locate the executor and he's been trying to sort through the mess because no money is left and he suspects the lawyer for the estate (a friend of the guardians) was not forthcoming. The executor doesn't even know how much exactly is owed on the home. Lis Pendens was filed on the house in October 2010.
Do you think there might be a chance to short sell this or should it go to foreclosure? Can the lender go after the estate for the deficiency? There's probably about $8k left in the estate.